Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Since inception of our IPO research in 2015, the Aequitas Research team has covered over 361 IPOs, which raised over US$100m each, across Asia Pacific (excluding Korea and China A-shares) and the US (Asia linked listings).For this insight, we used data from our IPO framework, the prospectus, company filings and market data to analyse 244 IPOs across Developed and Emerging Asia Pacific (excluding Korea and China A-shares) that took place over 2016-18. Our results are split across two insights.In this insight we looked at the country and GICS level IPO performance over 2016-18. We also analysed the variance between the first week and three month performance to decide whether buying orphans is better than sticking to winners. Some of our key findings include:<ul><li>Overall IPOs have provided an average 4.8% return at the end of the first week, some geographies like India and Thailand have clearly outperformed with average returns of over 10%.</li><li>IPOs in Hong Kong despite topping the list with the most number of deals, provided only 2.4% average returns.</li><li>In terms of sectors, Financial and Real Estate sectors have been the biggest capital guzzlers in the region. While Healthcare has been the consistent underperformer across geographies over the first few months.</li><li>Incremental returns are higher from holding on to winners than from trying to bet on losers turning around, both in terms of the percentage of such cases and in terms of the average returns overall.</li></ul>In our second insight, we’ll analyse the best and worst bookrunners by country, corporate governance impact on listing performance, earnings and liquidity analysis. Our key findings include:<ul><li>Some of the biggest names in Investment Banking, one American bank in particular, has by far the lousiest record of providing investor returns from IPOs in this region</li><li>IPOs without any corporate governance issues outperformed the ones with a few issues by 9% on the first day and over the first month. Deals with related party issues and cash/dividend payout prior to listing, performed the worst on average.</li><li>Sales estimates at the time of IPO appear to be a lot more reliable than the net income estimates. The latter has a bias towards being revised downwards much more so than the sales estimates. Target price changes seem to mirror share price movements and were largely out of sync with earnings revisions.</li><li>In terms of volume traded as percentage of shares offered, deals that did well on an average trade 2.5x more than deals that were under water. India had the highest proportion of shares being flipped owing to the high allocation to retail and HNIs while Australia had the lowest liquidity.</li></ul>This report has been prepared by the entire Aequitas Research Team:  <a href="https://www.smartkarma.com/profiles/9" target="_blank" data-smartkarma-citation="accounts:9">Ke Yan, CFA, FRM</a>, <a href="https://www.smartkarma.com/profiles/673" target="_blank" data-smartkarma-citation="accounts:673">Zhen Zhou, Toh</a> and  <a href="https://www.smartkarma.com/profiles/4" target="_blank" data-smartkarma-citation="accounts:4">Sumeet Singh</a>.

Since inception of our IPO research in 2015, the Aequitas Research team has covered over 361 IPOs, which raised over US$100m each, across Asia Pacific (excluding Korea and China A-shares) and the US (Asia linked listings).For this insight, we used data from our IPO framework, the prospectus, company filings and market data to analyse 244 IPOs across Developed and Emerging Asia Pacific (excluding Korea and China A-shares) that took place over 2016-18. Our results are split across two insights.In this insight we looked at the country and GICS level IPO performance over 2016-18. We also analysed the variance between the first week and three month performance to decide whether buying orphans is better than sticking to winners. Some of our key findings include:Overall IPOs have provided an average 4.8% return at the end of the first week, some geographies like India and Thailand have clearly outperformed with average returns of over 10%.IPOs in Hong Kong despite topping the list with the most number of deals, provided only 2.4% average returns.In terms of sectors, Financial and Real Estate sectors have been the biggest capital guzzlers in the region. While Healthcare has been the consistent underperformer across geographies over the first few months.Incremental returns are higher from holding on to winners than from trying to bet on losers turning around, both in terms of the percentage of such cases and in terms of the average returns overall.In our second insight, we’ll analyse the best and worst bookrunners by country, corporate governance impact on listing performance, earnings and liquidity analysis. Our key findings include:Some of the biggest names in Investment Banking, one American bank in particular, has by far the lousiest record of providing investor returns from IPOs in this regionIPOs without any corporate governance issues outperformed the ones with a few issues by 9% on the first day and over the first month. Deals with related party issues and cash/dividend payout prior to listing, performed the worst on average.Sales estimates at the time of IPO appear to be a lot more reliable than the net income estimates. The latter has a bias towards being revised downwards much more so than the sales estimates. Target price changes seem to mirror share price movements and were largely out of sync with earnings revisions.In terms of volume traded as percentage of shares offered, deals that did well on an average trade 2.5x more than deals that were under water. India had the highest proportion of shares being flipped owing to the high allocation to retail and HNIs while Australia had the lowest liquidity.This report has been prepared by the entire Aequitas Research Team:  Ke Yan, CFA, FRM, Zhen Zhou, Toh and  Sumeet Singh.

IPO Analytics: Cut Your Losses and Let Your Profits Run, Holds True for IPOs

APAC IPOs & Placements

Zhen Zhou, Toh

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

The Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs.<div><h2>Accuracy Rate:</h2></div>Our overall accuracy rate is 76.3% for IPOs and 65.2% for Placements.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/022/348/original/Total-Deals-Since-Inception-Accuracy-Rate-Since-Inception-_chartbuilder%20%281%29.png?1489129050" class="editor-image img-responsive" data-smartkarma-image-id="22348"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/022/349/original/2017-Total-Deals-2017-Accuracy-Rate-_chartbuilder.png?1489129058" class="editor-image img-responsive" data-smartkarma-image-id="22349"></figure><h2>Placements:</h2> What we wrote on this week:<a href="https://www.smartkarma.com/insights/universal-entertainment-positive-news-flow-may-continue-but-discount-has-yet-to-be-determined" target="_blank" data-smartkarma-citation="insights:9280">Universal Entertainment - Positive News Flow May Continue but Discount Has yet to Be Determined</a><ul>
<li>Earnings have been stronger than expected. Net income for FY2017 was revised up more than 100%</li>
<li>UE forecasted that it will distribute JPY40 per share dividend…</li>
</ul>

The Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs.Accuracy Rate:Our overall accuracy rate is 76.3% for IPOs and 65.2% for Placements.Placements: What we wrote on this week:Universal Entertainment - Positive News Flow May Continue but Discount Has yet to Be Determined
Earnings have been stronger than expected. Net income for FY2017 was revised up more than 100%
UE forecasted that it will distribute JPY40 per share dividend…


Smartkarma - ECM Coverage Weekly Update (11 Mar 2017)

Japan

BAROQUE JAPAN LIMITED designs, manufactures and sells mainly woman's apparels, accessories and other related products. The company also operates apparel stores in China.

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Baroque Japan (3548 JP)

IPO Analytics: Cut Your Losses and Let Your Profits Run, Holds True for IPOs

Since inception of our IPO research in 2015, the Aequitas Research team has covered over 361 IPOs, which raised over US$100m each, across Asia...

Sumeet Singh

Smartkarma - ECM Coverage Weekly Update (11 Mar 2017)

The Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs.Accuracy Rate:Our...

Zhen Zhou, Toh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)